E D C U TA H I N D U S T R Y P R O F I L E | FY 18-19 A DVA NC E D MATERIALS IN UTAH MAJOR UNIVERSITIES AND COLLEGES O N T H E COV E R Nammo Composites Drive Shaft Carbon composite attached to bright orange aluminum alloy Made to handle the extreme movement and temperature found within the transmission of a high-end sportscar M A J O R E M P LOY E R S M I L I TA R Y A N D D E F E N S E Utah State University Westminster College Brigham Young University Weber State University Salt Lake Snow College Hill Air Force Base University of Utah Southern Utah University Tooele Army Depot 10 Dixie State University Community College Utah Valley University Ogden Air Logistics Complex ENVE Composites TCR Composites KIHOMAC Camp Williams Janicki Industries Dugway Proving Ground OxEon Utah Test and Training Range Composites One Advanced Composites Albany Engineered Composites A L OG A N 1 • Utah is proud to be home to companies like Boeing, Orbital ATK, Hexcel, Black Diamond, Kihomac, and many others Beginning with the strategic missile programs of the 1950’s, Utah has grown to one of the highest concentrations of advanced materials companies in the nation and is home to more than 14,000 workers employed by advanced materials-related firms • The Utah Aerospace Composites Industry Working Group (ACWG) meets quarterly to advocate for aerospace composites industry issues in Utah The Utah Advanced Materials and Manufacturing Initiative (UAMMI) supports the advanced materials industry by bringing together public, private, community, industry, and education partners to assure growth in the sector • Utah has a thriving Advanced Materials industry that serves the Aerospace, Outdoor Products, and Renewable Energy industries These three complementary industries, with their strong ties to the advanced materials market, allow for a strong local customer base for relocating and expanding companies Business Climate • Forbes Magazine has recognized Utah as “The Best State for Business” six of the past eight years, ranking 3rd in 2018 E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E Updated Jul 2018 B S A L T L A KE CI TY B C 26 21 5 DPS Skis 28 Entec 15 Hoyt 16 Huntsman Chemical 17 Nammo Composite Solutions 18 Qualified Rapid Products 19 Radius Engineering 20 Hexcel 21 Conductive Composites 22 Otto Bock 23 Rock West Composites 24 Orbital ATK 25 Reynolds Cycling 26 Allegheny Technologies 29 C 31 Workforce • Utah has high employee concentrations of materials engineers, materials scientists, engineering technicians, and many other advanced materials related occupations Utah also has the 9th lowest unionization rate in the country at 3.9% (2017) MOAB • Six colleges and universities from around the state offer training and specialized programs in the composites field and annually graduate hundreds of qualified workers at all levels of education and experience Additionally, the state’s science, technology, and research initiative (USTAR), and University Tech Transfer programs spin out more next-generation technology than any others in the nation • Utah has an abundance of advanced materials companies working in the aerospace and outdoor products industries that have industry recognized expertise in advanced materials applications 10 S T G E OR G E A P P L I E D T E C H N O LO GY CO L L E G E S Bridgerland ATC Tooele ATC Southwest ATC Ogden-Weber ATC Mountainland ATC Dixie ATC Davis ATC Uintah Basin ATC Easton Technical Products 14 27 30 E D C U TA H O R G Boeing 12 P R OV O • In 2015, Utah’s post-performance tax incentives facilitated nearly 25,000 new jobs and more than $65M in new state revenues • In 2018, the Tax Foundation ranked Utah’s Total Tax Climate as the 8th best in the nation Since 2011, Utah has eliminated or modified nearly 400 business regulations to ease the burdens placed on businesses Black Diamond 11 A From Aerospace to Outdoor Products, Utah Knows Composites Industry Amedica 13 OG D E N 10 27 Gold Tip 28 General Atomics Aeronautical Systems 29 Klune 30 ACT Aerospace 31 Freedom Innovations Major Advanced Materials Employers C O M PA N Y E M P LOY E E S * DESCRIPTION ACT Aerospace 100-249 ACT Aerospace fabricates advanced composite structures including hand layed-up laminate construction, filament winding, composite compression molding and large oven curing Advanced Composites 50-99 Albany Aerostructures Composites 500-999 Allegheny Technologies 100-249 Amedica 20-49 Black Diamond 250-499 Boeing 1000-1999 Composites One 20-49 Conductive Composites 20-49 DPS Skis 20-49 Easton Technical Products 250-499 Entec / Toray 20-49 ENVE Composites 100-249 Freedom Innovations 50-99 General Atomics Aeronautical Systems 100-249 Gold Tip 50-99 Hexcel 500-999 map #30 map #7 map #8 map #26 map #9 map #10 map #11 map #6 map #21 map #12 map #13 map #14 map #1 map #31 map #28 map #27 map #20 Advanced Composites is a filament winding company that specializes in aerospace, defense, and commercial applications Albany Aerostructures Composites designs, develops, and manufactures advanced composite components for commercial and military structures for Boeing, Lockheed, Sikorsky, USAF, Airbus, and others Allegheny Technologies is a specialty materials and component supplier, specializing in titanium and titanium alloys Amedica is a manufacturer of silicon nitride based medical implants that are fully FDA approved for spinal surgery with a wide variety of devices and systems Black Diamond designs and manufactures outdoor gear including carbon composite skis and climbing equipment Boeing’s Utah composites manufacturing site focuses on fabrication of composite vertical fin and horizontal stabilizer components for the 787-9 Dreamliner Composites One is a distributor of composite materials of all types They have strong technical product support and local services including: product data, process audits, compliance, and regulatory consulting Conductive Composites is a manufacturer of conductivity-based polymer and composites used in aerospace, defense, and specialty construction DPS Skis designs and manufactures snow skis for ultra high performance skiing using a fusion of space-age carbon fiber technology and groundbreaking shaping strategies Easton Technical Products manufactures arrow shafts and archery accessories, as well as backpacking tents, snowshoes, trekking poles, and precision OEM tubing Entec is a filament winding machine manufacturer that has developed and supported machinery for pultrusion, fiber placement, spool winding, towpreg and prepreg production, fiberglass pipe, and tank production ENVE Composites manufactures carbon fiber bicycle products including frames, wheels, components, and accessories Freedom Innovations develops lower limb prosthetic solutions in close collaboration with prosthetists and amputees General Atomics Aeronautical Systems manufactures Remotely Piloted Aircraft (RPA) systems, radars, and electro-optic and related mission systems solutions Gold Tip manufactures carbon graphite equipment for archers and bow hunters, specializing in high quality carbon arrows Hexcel manufactures lightweight, high performance composites including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems and adhesives *SOURCE : Utah Department of Workforce Services E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E Freedom Innovations DynaAdapt and Kinterra Foot/Ankle System combining hydraulics and carbon fiber technologies to create exceptionally normal walking gaits on a variety of surfaces E D C U TA H O R G Completed fuselage components for Airbus A350 XWB await shipment in the Orbital ATK Aircraft Commercial Center of Excellence (ACCE) facility in Clearfield, Utah C O M PA N Y E M P LOY E E S * DESCRIPTION Hoyt USA 100-249 Hoyt USA is a sporting goods manufacturer that utilizes composite technology to manufacture archery equipment Huntsman Chemical 20-49 Janicki Industries 50-99 KIHOMAC 250-499 Klune 100-249 Nammo Composite Solutions 50-99 Orbital ATK 2000-2999 Otto Bock 100-249 OxEon 10-19 Qualified Rapid Products 10-19 Radius Engineering 20-49 Reynolds Cycling 20-49 Rock West Composites 20-49 TCR Composites 50-99 map #15 Huntsman Chemical is a global chemical company with a broad range of resins and other products for the advanced materials industry Their corporate headquarters is in Salt Lake City map #16 Janicki Industries is an Engineering and Manufacturing company, specializing in advanced composite materials and exotic metals map #4 map #3 map #29 KIHOMAC specializes in prototype development and manufacturing for US government customers requiring high engineering content and specialty machining Klune manufactures metal and composite machine parts and assemblies for the aerospace and defense industries Nammo Composite Solutions designs and builds advanced integrated composite structures using the processes of filament winding, resin transfer molding (RTM), autoclave cure, and bladder molding for a broad range of products map #17 map #24 map #22 Orbital ATK designs, manufactures, and tests commercial, military, and launch vehicle composite aerospace structures for Boeing, Lockheed, Airbus, and Rolls-Royce Otto Bock uses composite materials to manufacture prosthetics such as a modular lower limb prosthesis, myoelectric arm prosthesis, C-Leg, Genium leg prosthesis system, Michelangelo Hand, and the mechatronic C-Brace orthotronic mobility system OxEon is an advanced materials company that develops solid oxide ceramics for fuel cell and hydrogen / syngas generation applications map #5 Qualified Rapid Products is a turn-key 3D metal printed parts supplier for performance critical parts map #18 Radius Engineering provides mold tooling and injection systems for automobile seat frames, sailboat masts, prosthetic hands, ski poles and grips, archery bows, tennis racquets, bicycle frames, fishing poles, violin bows, airplane wings, and many more map #19 Reynolds Cycling uses composites to produce bicycle wheels and accessories, including the use of unidirectional carbon fiber technology in bicycle rims map #25 Rock West Composites designs, engineers, and manufactures composite products for nearly any application, specializing in rods, tubes, and plates map #23 TCR Composites develops prepregs with long out-life to solve the challenges with building large rocket motor cases, as well as new resin systems that are being used in a wide variety of applications across the commercial and aerospace industries map #2 *SOURCE : Utah Department of Workforce Services Two of Nammo’s many products: Left: The PA179-IM munitions canister for 70mm aerial rockets Right: Carbon fiber control arm for a custom, high-end automobile restoration E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E E D C U TA H O R G Nasa’s Composite Cryotank Development Project (CCTD) approached Janicki Industries to design a series of low-cost prototype tooling ENVE Composites, located in Ogden, UT designs and hand builds carbon wheels and component systems for mountain and road bikes Recent Announcements UAMMI Awarded $1M Grant to Produce Legacy Airplane Parts using 3D Carbon Fiber Printing (2018) The Utah Advanced Materials & Manufacturing Initiative (UAMMI) will use a state-of-the-art 3D carbon fiber based printing process to produce parts for out-of-production military aircraft The grant comes from the National Center for Defense Manufacturing & Machining and the system will be located in the USTAR Innovation Center adjacent to Hill Air Force Base Orbital ATK Celebrates Delivery of 5,000th Part for Lockheed Martin F-35 Aircraft (2018) In February 2018, Orbital ATK marked completion of high performance composite wing skins, engine nacelles, access covers and other parts representing 490 ship sets for the F-35 Lightning II These parts are then finished by Janicki Industries in their Utah precision machining facility before delivery to prime contractor Lockheed Martin Orbital ATK’s advanced automated fiber placement machines have played a critical role in reaching and maintaining the high production rates required on the F-35 program Boeing Completes 200th All-Composite 787 Vertical Fin in Salt Lake City (2017) Boeing’s three commercial airplane manufacturing facilities in Utah employ 700 people Production lines for 787-9 and 787-10 horizontal stabilizers, and a third for the 787 vertical fin, operate side by side in the Airport factory Components are added to the tail structures, which are tested for quality, assembled for fit checks, and then disassembled The site ships out up to 14 sets of horizontal stabilizers each month to factories around the nation ENVE Composites Launches Revolutionary New Carbon Bike Wheels (2017) World leader in ultra-high performance, handmade carbon fiber bicycle rims and components , ENVE announced the all-new M Series, featuring game changing technology that promises to all but eliminate pinch flats forever Designed for the toughest mountain biking and road cycling environments, ENVE wheels are used by professional and amateur cyclists worldwide Orbital ATK delivers 100,000th part for Airbus A350 (2016) Orbital ATK’s Aerospace Structures Division (ASD) and Airbus Americas celebrated the completion of the 100,000th composite part for the A350 XWB program These composite stringers and frames, the equivalent of more than 140 ship sets, use Orbital ATK’s proprietary and patented automated stiffener forming machines (ASFM) which have been instrumental in the development and manufacture of high-rate production of precision composite parts E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E E D C U TA H O R G Cost Profile Occupational Wages in Advanced Materials Advanced Materials Industry Average Wage $52,520 $37,340 400 E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E E D C U TA H O R G N AT I O N A L WA S H I N G T O N $33,610 $35,990 $34,830 KANSAS SOUTH CAROLINA $29,880 $32,790 ALABAMA $34,600 N AT I O N A L $30,020 $35,750 WA S H I N G T O N $8.29 WA S H I N G T O N $5.18 SO CAR N /A $35,790 $45,520 SOUTH CAROLINA U TA H $5.94 $5.62 KANSAS $4.03 $7.60 N AT WA S H I N G T O N $4.70 SO CAR 6.64¢ 6.00¢ 6.84¢ Property Tax (Collections per capita) 10% Sales Tax Exemption on Manufacturing? 8% 4% 2% Corporate Income Tax N /A 6% N AT I O N A L $35,970 Natural Gas / Industrial ($/1000 Feet3) 6.33% $42,250 U TA H $29,330 GRT* 1200 800 $35,360 SO CAR $31,090 $540 $35,260 ALA $34,200 $976 $29,360 Taxes 1600 $29,550 Electricity / Industrial (¢/kWh) $2000 $31,650 10 5% Flat Rate $42,600 SOURCE: Energy Information Administration, April 2018 $4.74 $49,070 N AT I O N A L $36,940 $1,518 $40,180 N AT I O N A L $42,340 4.60¢ $47,850 WA S H Machinists $1,409 $33,060 WA S H I N G T O N $39,660 $1,130 $34,800 SO CAR $31,420 $1,440 $30,160 SO CAR KANSAS KANSAS $58,870 5.80¢ $68,390 ALABAMA $61,960 5.26¢ $57,190 U TA H $57,290 $33,840 Inspectors, Testers, Sorters, Samplers, & Weighers $12 10 $56,090 Cutting Punching and Press Machine Setters Operators and Tenders Metal and Plastic Molding Coremaking and Casting Machine Setters Operators and Tenders Metal and Plastic KANSAS $24,710 ALABAMA $34,290 U TA H $34,300 WA S H I N G T O N $30,690 $33,280 SO CAROLINA Utilities KANSAS $54,280 KANSAS $57,000 7% Top Rate $49,270 $6.14 $52,230 U TA H $57,920 Industrial Lease ($/sq.ft.) 12 ¢ First-Line Supervisors of Production and Operating Workers Industrial Construction ($/sq.ft.) $59,660 ALABAMA 25 $3.97 $85,880 ALA $89,100 ALABAMA $82,940 6.5% Flat Rate $75,340 U TA H $85,750 5% Flat Rate Industrial Engineering Technicians $84,430 N AT I O N A L $33,310 KANSAS ALABAMA $28,870 N AT I O N A L U TA H 75 $6.95 $100,580 U TA H $117,370 U TA H $111,530 $122.32 $89,330 100 N AT I O N A L $96,300 10 $121.32 $87,270 125 WA S H N AT I O N A L $102.88 WA S H I N G T O N SO CAR SOUTH CAROLINA $108.94 KANSAS KANSAS ALABAMA SOURCE: Loopnet $12 $105.27 U TA H Cutting & Slicing Machine Setters Operators & Tenders SOURCE: RSMeans $150 50 Mechanical Engineers Extruding & Drawing Machine Setters, Operators, & Tenders, Metal & Plastic ALA Industrial Production Managers Assemblers & Fabricators, Including Team Assemblers Real Estate Other Comparative Wages in Advanced Materials O C C U PAT I O N WA S H I N G T O N SOUTH CAROLINA KANSAS ALABAMA Mechanical Engineering Technicians $106.16 Industrial Engineers U TA H N AT I O N A L WA S H I N G T O N SOUTH CAROLINA N AT I O N A L WA S H I N G T O N U TA H SOUTH CAROLINA 40 20 $31,520 $55,360 $62,400 $54,550 $51,730 60 $54,750 $53,430 $85,880 $79,110 KANSAS $104,230 $82,090 ALABAMA $82,260 $83,510 U TA H $103,222 $66,809 KANSAS $62,010 $65,886 ALABAMA 80 $63,680 100 SOURCE: Bureau of Labor Statistics, May 2017 $69,754 $120K SOURCE: taxfoundation.org * GRT = Gross Receipts Tax Businesses are taxed on ALL business sales transactions instead of corporate income Areas of Excellence “Areas of Excellence” are industry sub-sectors in which Utah has a competitive advantage due to our infrastructure, trained workforce, historical expertise, and community support The diagram below shows the collaboration and interrelationship of Utah’s business accelerators, educational institutions, government initiatives, and companies within the advanced materials industry Reynolds Cycling Gold Tip Black Diamond Hoyt The HAFB Composites Engineering and Repair Facility has system-wide responsibility for major airframe programs and upgrades DPS Skis 2 The Advanced Composites Working Group meets often to address industry concerns and determine initiatives that keep the industry thriving The Society for the Advancement of Material and Process Engineering (SAMPE) is a professional member society that provides a unique and valuable forum for scientists, engineers, and academic leaders The University of Utah based Utah Advanced Materials and Manufacturing Initiative (UAMMI) supports the advanced materials industry by bringing together public, private, community, industry, and education partners to assure growth in the advanced materials sector ENVE Composites Advanced Composites Working Group 5 The Utah Composites Laboratory at the University of Utah conducts research and development for the computational mechanics of composite materials and structures Easton Technical Products University of Utah Materials Science & Engineering Composites and Aerospace of Northern Utah (CANU) provides a regional approach to strengthening Northern Utah’s already robust aerospace and composites industries Rock West Composites Outdoor Products Utah Advanced Materials & Manufacturing Initiative (UAMMI) Hypercomp Orbital ATK Utah Composites Laboratory Mountaland Tech Weber State University Manufacturing Engineering Tenchnology:Plastics & Composites Ogden-Weber Tech Brigham Young University Manufacturing Engineering Technology Bridgerland Tech Hill Air Force Base Aerospace of Northern Utah (CANU) ACT Aerospace Salt Lake Community College Materials Engineering Aerospace Aerospace Engineer & Supporting Society for the Advancement of Materials & Process Engineering, Utah Chapter (SAMPE) Albany Engineered Composites (Formerly Harris Corporation) Nammo Composite Solutions Boeing Diamond Mold Radius Engineering Hexcel General Atomics Aeronautical Systems Conductive Composites Janicki Industries LINE KEY KIHOMAC E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E Davis Tech Klune TCR Composites TCB Composites E D C U TA H O R G Companies Accelerators Infrastructure Educational Institutions Education & Labor Easton Technical Products brings its burgeoning knowledge of advanced materials to the worlds of archery, backpacking, and showshoeing A State of Education Utah is home to 12 major colleges and universities and has an excellent talent pipeline of over 307,000 students Bachelor’s and graduate awards grew by 30.8% over the last five years Utah has an educated workforce, with over 91% of the population 25 or over with a high school diploma and over 32% with a bachelor’s degree - T O TA L S TAT E W I D E E N R O L L M E N T & D E G R E E S 307,211 47,385 Degree Enrollment 70,000 140,000 210,000 280,000 350,000 T O P T H R E E I N S T I T U T I O N S W I T H A DVA N C E D M AT E R I A L S - R E L AT E D D E G R E E S University of Utah Weber State University Brigham Young University DEGREE: M aterials D E G R E E : Manufacturing DEGREE: Science & Engineering The Materials Science and Engineering degree prepares students with the ability to use the techniques, skills, and modern engineering tools necessary in materials engineering practices Engineering Technology: Plastics & Composites The Manufacturing Engineering Technology: Plastics and Composites degree teaches students firsthand about the complex interdependence between the plastic/ composite process, materials, tooling and part design Mechanical Engineering Brigham Young University is deeply involved in research in the composites industry The engineering materials group develops novel processing techniques to prepare advanced materials using cutting edge microscopy to determine material structure at the nano-scale Easton’s Trail Snowshoe The Labor Picture Utah’s labor force is well educated, growing, and affordable Utah created nearly 40,000 jobs in 2017 and maintained one of the highest job growth rates in the nation throughout the year Utah is the youngest state in the nation with a median age of 30.7 and has an average wage of $46,068, which is 15% lower than the national average A DVA N C E D M AT E R I A L S E M P LOY M E N T I N D E X 120 Mechanical Engineers 116 112 Inspectors, Testors, Sorters, Samplers, and Weighers 112 Industrial Production Managers 108 103 101 Molding, Coremaking and Casting Machine Operators, Metal and Plastic This graph represents an index based on location quotients showing the large concentration of advanced materials-related occupations in Utah Any occupation above the national average of 100 demonstrates a competitive advantage in Utah Industrial Engineering Technicians Assemblers and Fabricators, Including Team Assemblers First-Line Supervisors of Production and Operating Workers 1346 Carbon & Graphite Product Manufacturing Industry 100 National Average 200 300 400 500 600 700 500 F I V E -Y E A R E M P L OY M E N T C H A N G E 14.15% U TA H 7.73% N AT I O N 12 15 SOURCE: Bureau of Labor Statistics E D C U TA H A D VA N C E D M AT E R I A L S P R O F I L E E D C U TA H O R G Utah knows all about advanced materials EDCUtah questions? Call Theresa Foxley President & CEO: 801-328-8857 Project questions? Call Colby Cooley, Business Development Manager: 801-323-4250 Research questions? Call Michael Stachitus, Research Manager: 801-323-4253 Have questions about the Advanced Materials industry in Utah? Call us at 1-800-574-8824 201 South Main Street, Suite 2150, Salt Lake City, UT 84111 | 1-800-574-UTAH (8824) | edcutah.org